ESG investment mandates are becoming more and more common, but not all ESG-compliant companies are created equal - a fair few of these businesses are still more "vaporware" than real, with an investment case that rests on significant fundamental shifts in how consumers, companies, and economies operate. Not so with Unifi (NYSE:UFI), as this yarn producer has a long operating track record behind it, including a strong track record with its REPREVE line of polyester and nylon yarns made from recycled plastics.
Unifi's management has some bold goals, including a nearly mid-teens revenue growth rate over the next three and a half years, as well as significant margin improvement. While I do think the wind is at Unifi's back where the increased use of recycled materials is concerned, I do have some concerns that the goals a bit too ambitious. Even still, a more modest set of targets can still drive a double-digit annualized return from today's level.
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Unifi Looking To Translate Solid ESG Credentials Into Better Financials
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